Australia's ASX jumps as brokers upbeat on targets, shrug off higher FY26 costs

ASX

29/01/2026 01:02

Updates share moves, adds corporate governance details

** Shares in Australian bourse operator ASX Ltd ASX.AX rise as much as 5.5% to A$56.4, their highest level since December 15, as upbeat broker views outweigh cost concerns

** Stock currently up 4.3% at A$55.78, on track for its biggest intra-day pct gain since February 13

** ASX lifted its FY26 expense growth outlook on Wednesday to 22% from 17%, flagging heavier spending on risk‑management and technology upgrades to meet heightened regulatory scrutiny

** ASX
appoints
 seven members to its newly formed corporate governance advisory group on Thursday amid regulatory investigation

** Citi analysts say ASX’s  elevated expense outlook underscores persistent challenges amid “uncertain regulatory goalposts”

** Brokerage, however, says stronger‑than‑expected revenue cushions some of the earnings impact

** Despite cost headwinds, Citi raises its price target to A$54.50 from A$52.20, citing adjustments made for higher base expenses

** Morningstar maintains its A$70 fair value estimate for ASX, indicating shares remain undervalued

** Morningstar notes fiscal 2026 operating margins are likely to dip to the low-50s due to regulatory-driven cost pressures

** Stock up 8.6% this year, including the day's move

(Reporting by Roushni Nair in Bengaluru)

((Roushni.nair@thomsonreuters.com))